The company took to the site in Port Elizabeth's western suburbs, adjacent to the N2, last week under the eye of Alex Boyazoglu, MD of M&R Buildings.
The construction of the mall will create about 10,000 jobs during the construction phase - 3000 through direct employment and more than 7000 indirect and induced jobs. A further 1500 permanent jobs will be created to staff 250 retail outlets in the 90,000m² shopping centre, which will be similar in size to Cape Town's Canal Walk shopping centre, also built by M&R.
A 50% minimum target has been set for the use of BBBEE, local labour and spending on the project within the local economy. The developers have also appointed Azola Tybosch as the community liaison officer to assist Bay SMEs to register on a database for possible work on the project. The mall is central to the development of the greater Bay West City project, for which the developers have earmarked 300 hectares.
Bay West City MD, Gavin Blows said he had every confidence in the construction company, which had a reputation for good workmanship and the capacity to deliver large developments on time. Much of the team that built Canal Walk will be part of the Bay West Mall construction.
"We are extremely excited about this project," said Blows. "Port Elizabeth is one of the last regional retail opportunities available and this asset class has proven over many years to be the best performing in the property sector.
"It is an opportunity to upgrade and upsize the retail experience for Port Elizabeth and greater Eastern Cape shoppers. We believe the region is ready and has capacity to accommodate this new mall and will be a catalyst to the expansion of the wealthy western suburbs."
He referred to the development of the Redhouse-Chelsea Arterial road, which will run through the site. "The city, the SA National Roads Agency Limited (Sanral) and the developers have come together to create a R300-million new road network that will not only bring the region to our doorstep but will also accelerate the residential and commercial growth of this part of the metro. We are privileged to be bringing much-needed employment to the region and to be a part of the city's 2020 vision for growth."
Earlier this month, the Department of Economic Development, Environmental Affairs and Tourism gave the thumbs-up for the construction of a road network - the Redhouse-Chelsea Arterial and the extension of Walker Drive - that will link the western suburbs of Port Elizabeth, which is an important component to the development. The Redhouse-Chelsea Arterial will link with Walker Drive and pass over the N2 freeway.
The department also okayed three haul roads "to provide access for construction vehicles during the construction phase of the project and to remove any traffic constraints that may be imposed upon Sherwood, especially Walker Drive", the department has said. All three are set to be rehabilitated upon completion of the project.
Boyazoglu said the mall was a key project for Murray & Roberts, which is also busy with the construction of Cape Town's tallest building, Portside.
"We are very proud to be associated with Abacus and Billion on this development and look forward to growing that relationship. We have one of our best teams responsible for the delivery of this project and are also paying special attention to adhering to all the environmental protocols set out by the Department of Environmental Affairs."
The company was busy with establishing the site, commencing with excavations, installing services and finishing off platforms for the mall, Boyazoglu said. Over the next few weeks, at least five tower cranes will be erected to facilitate construction, along with a host of other large plant equipment. A dedicated concrete ready-mix batch plant will also be erected on site to supply the approximately 57,000m³ of concrete required.
The commencement of construction comes on the heels of a R1.7-billion funding deal concluded between the mall developers and Nedbank Corporate Property Finance - the largest property development sum ever agreed to by the bank.
"The sheer size of this development deal meant that approval had to be made at board level," said Ken Reynolds, regional executive of Nedbank Corporate Property Finance.
"However, given that Sisa Ngebulana, Billion's MD, and Jaco Odendaal, Abacus' chairman, represent two of South Africa's most respected and successful property development companies and the obvious potential Bay West Mall has to inject sustainable benefits and growth into both the Port Elizabeth and Eastern Cape economy, we knew Nedbank had to be involved."
